Another frustrating day.

[Jimmy L Kim]

I did a FHA appraisal on a bank owned property about a month ago. Purchase price was $384K and I came in at $355K. For the first couple of weeks the MB was calling to see if there was an "wiggle?" room. I told him nicely that what it is is what it is. Well, I got a call from the same MB today to let me know that they found another appraiser to do the appraisal and he came in at purchase price(it even passed Landsafe review). So I told them to email me a copy if he had one.

Well, I just saw the copy and I think the report is misleading(in my opinion). I just saw the first two comps and I didn't need to look any further. Sale 1 is on the same block and it was pending the time of my report and reason why I didn't use it(noted in my report) was because the garage was converted to a living area with permit(verified with the listing agent and LADBS website). So, this sale was appx 450 SF larger than subject(subject is appx 1,500 SF) and in much superior condition. Also, it had been pending since Feb and closed couple of weeks ago. No time adjustment(I've always thought that time adjustments were made from the pending date, not from the closing date) and no adjustment for 3% NRCC.

Sale 2 was pending at the time of my inspection and from my notes from the interview with the listing agent, overall condition was similar. Just minor cosmetic issues. But on the new report, it's noted as "inferior" and $20K adjustment was made. And again, no adjustment for NRCC of 3% and no time adjustment. I mean subject is in a market where REOs and short sales dominate. At the time of my report, in the overall market area there were total of 554 active and pending sales of which 311 were either REOs or short sales.

Another thing that gets me is that this is FHA purchase and there are no repairs or conditions noted. Among other things, in one of the subject's bathrooms, there was mold on the ceiling and under the sink. You'd have be blind not to notice. Water heater was not properly braced and etc...

Another funny thing, adjusted sale prices for 3 closed and 2 active sales were from $385,500 to $442,000 and the guy came in at $385K.

And I get the blame for coming in too low... great way to start the weekend...

 

[Bama Bayou]

Hey, you did your job, that's all you can do.

Is the new appraisal FHA or conventional?

 

[Workbox]

never mind

 

[Pete Humphrey]

I have always told my l.o.'s that if they want an appraiser to make the number, they can always find a liar - they're a dime a dozen. But I warn them not to be surprised if some day they end up together in a court room with their hankies. If they want an appraiser to give them an honest answer, they better hang on to my card. I've lost alot of business, but none I really needed in the first place. The l.o's I work with now respect my opinion. There's very few of them, but they are the gems of the profession. I will hate to lose their business if and when home valuation agreement passes and they are forced to call 1-800-roll-the-dice-for-an-appraiser!

 

[Dan Johnson]

HVCC-AMC's

I know what you mean. I feel the same way. Everytime I try to work for an AMC, I fail, I just can't meet their deadlines and picky requirements, not to mention their low fees, but it seems residential is heading that way. In Saginaw Michigan, appraisers are now working for $165-$175 with AMC's and I just lost another who was paying $240 go down to $175. Problem is they are finding appraisers who are willing to work for that low fee. I don't know how they do it, I'm already putting in at least 6 comps and writing a narrative on market conditions with my credit union and small bank clients who haven't yet gone to AMC's, but probably will. I have been appraising residential for 24 years, am a certified general with an SRA designation and I will be out of business unless I lower myself to low fees and even then I don't think I could get enough volume from AMC's to make a living. Luckily I don't do work for mortgage brokers, sounds like they will certainly be working with AMC's. Anyways, I feel your pain along with many others, only time will tell. All I can say is hang in there, what will be, will be....

 

[Mztk1]

If someone wants to cheat, it is all too easy. All we can do is an honest day's work.

LandSafe, to the best of my knowledge, does not question value differences if they are within 10%. So if the report was reviewed and the reviewer like you felt it was only worth $355,000 the original appraisal would stick because the difference is only 7.55%.

 

[ZZGAMAZZ]

When an industry is governed primarily by ethics, with oversight and enforecement largely ignored, a typical practitioner who seeks to provide a credible project cannot remain competitive, and financially solvent.

I'm sure that the demise of the appraisal industry will be the basis of many (retrospective) Ivy League case studies in the not too distant future.

 

[Mike Boyd]

If this( and the NEW appraisal by others) were both FHA, they would have to have a very compelling reason to assign it to another appraiser (compelling= death, extreme sickness, out of town, etc). UNLESS....you did the report without an FHA case number.

If they merely substituted another appraiser for you, the loan will not be insured by FHA.

This would be called RETRIBUTION. If you are so inclined, you can call the Santa Ana HOC and inform them as to what went on. This would speed up FHA action against the client.

 

[Mike Boyd]

Another thing: When they start nagging you to increase the value you found, tell them to send you a Request For Reconsideration of Value. That request must go through their underwriter and it must include new comps or other data that supports the sales price. If the underwriter agrees, then THEY will send you the request for reconsideration and in doing so, they must agree to pay you if you do not agree that their new data or comps is relevant. THAT is the FHA way. There is no reason to feel frustration if YOU follow the rules.

However, you must address the new data and justify why it is not relevant.

 

[Dirty Harry]

If this( and the NEW appraisal by others) were both FHA, they would have to have a very compelling reason to assign it to another appraiser (compelling= death, extreme sickness, out of town, etc). UNLESS....you did the report without an FHA case number.

If they merely substituted another appraiser for you, the loan will not be insured by FHA.

This would be called RETRIBUTION. If you are so inclined, you can call the Santa Ana HOC and inform them as to what went on. This would speed up FHA action against the client.

Yeah, what Mikey said! :new_2gunsfiring_v1: